The HUD Schedule of Attorney Fees (Schedule) states the maximum fee amount that may be reimbursed in an FHA insurance claim for a foreclosure attorney, bankruptcy clearance, possessory action, and completion of a Deed-in-Lieu (DIL).
The HUD Schedule of Attorney Fees reflects the customary legal services pertinent to mortgage Defaults. Each fee on the Schedule is the total maximum amount, instead of an hourly rate, reimbursable in a claim for mortgage insurance benefits.
The HUD Schedule of Attorney Fees does not reflect additional expenses incurred due to foreclosure and/or mediation because of the wide differences in costs and lengths of time of foreclosure completion, depending on the jurisdiction in which the foreclosure actions are occurring. For any additional expenses incurred due to required legal actions, such as mediation or probate proceedings, the Mortgagee may claim these amounts by submitting a documented cost breakdown and retaining in the Claim Review File, a written justification for those costs.
The Mortgagee may claim no more than 75 percent of the maximum attorney fee for incurred fees associated with a routine foreclosure that was not completed because any of the following occurred after the Mortgagee initiated foreclosure:
- the Borrower filed for a bankruptcy petition;
- the Borrower executed a DIL of Foreclosure; or
- the Borrower successfully completed a PFS.
HUD will reimburse allowable attorney fees in accordance with HUD guidance pertaining to the reimbursement of foreclosure costs.
HUD’s Schedule of Attorney Fees is located in Appendix 5.0 of Handbook 4000.1.
Any questions may be directed to the FHA Resource Center Toll-Free Telephone Number at (800) CALLFHA (225-5342) or by email to answers@hud.gov. Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at (800) 877-8339.
For policy information see, Handbook 4000.1 III.A.2.t.ii(F) and IV.A.2.a.ii(K) available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh